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International BusinessIMF & WORLD BANK
Identify two countries, one in Africa and one in either Asia or Latin America. Research each country’s history with the IMF and the World Bank. Has the country accepted loans from either organization? What were the terms of the loans? Discuss whether the loans achieved the initial purpose and whether the country is better or worse off as a result of working with these institutions. Have the loans helped expand the prospects for businesses, local and multinational? Provide your evaluation in a three-page paper.IntroductionIn this paper I will be doing research on two countries i.e Saudi Arabia and Pakistan. In research I will find out about the relationships of the above mentioned countries with IMF and World Bank and how these institutions have helped, supported and played a role towards the economy and stability of these countries. History of Saudi Arabia with IMFIn the recent years it has been observed that Saudi Arabia's economy is going downwards and they will need to depend on other resources than just oil. Saudi Arabia has applied for a loan amount of $10 billion to support their economy. The price of crude oil has played a big role in affecting the economy with the decrease in price from $146 per barrel in 2008 to $47. The high rate of crude oil made Saudi's believe thatit will generate tremendous amount of revenue for them. Saudi Arabia's government instead of investing in the infrastructure, food technology, information technology and human resources the investment was made in West. Saudi Arabia carried on to import basic food needs to keep the life of their citizens comfortable. Foreign national were fulfilling the roles at special jobs and as well as menial roles. Saudi Arabia did not even focus on advanced space research neither on bio-technology, IT and defense.